P&G Q1 net dips 7%; sales increase marginally

Leading producer of household and personal products Procter & Gamble Co (P&G) today reported a 7 per cent decline in its net profit to $3.08 billion in July-September quarter while the sales increase on introduction of new products and growth in emerging markets.

In the year-ago period, the entity had a net profit of $3.30 billion, P&G said in a statement.

The company's net sales increased by 2 per cent from the year-ago period to $20.1 billion in the first quarter ended September 30, 2010, on strong volume growth.

"Our first quarter was a good start to the fiscal year. We maintained our top-line momentum and delivered profitable market share growth," P&G Chairman President and Chief Executive Officer Bob McDonald said.

The company, which makes items like Gillette razors, pampers diapers and Pantene shampoo, said volume increased eight per cent, with growth in all major geographic regions and five of six business segments.

"Unit volume was up double digits in developing regions and mid-single digits in developed regions," the company said.

Looking ahead, the company said its net sales is expected to rise by 2-4 per cent in the forthcoming quarter and it is estimated to increase in the range of 3-5 per cent in fiscal 2011.